What is the usual result of a recession?Multiple choice question.A decrease in net tax revenues and a budget deficit.A decrease in net tax revenues and a budget surplus.An increase in net tax revenues and a budget deficit.An increase in net tax revenues and a budget surplus.

Which of the following is most indicative of a recession?An increase in demand for stocks. An upward sloping yield curve. A negative term spread. An increase in the number of mortgages issues by banks.

Based on the business cycle facts studied in class, what would you expect to happen to the following macroeconomic variables during the next few quarters if you knew that the economy was falling into a recession? Select one: a. Investment decreases, average labor productivity increases, real wage decreases, unemployment rate increases. b. Investment decreases, average labor productivity decreases, real wage decreases, unemployment rate increases. c. Investment decreases, average labor productivity increases, real wage increases, unemployment rate increases. d. Investment increases, average labor productivity decreases, real wage increases, unemployment rate increases.

Which situation is most likely to result in a government having a budget deficit for a year?A.A government decides to build an expensive new highway system while also lowering taxes.B.A government cuts funding to income assistance programs for veterans and the elderly.C.A government decides that all its spending programs will be discretionary instead of mandatory.D.A government raises taxes on corporations in an effort to quickly pay off its entire national debt.SUBMITarrow_backPREVIOUS

Government budget deficits tend toGroup of answer choicesincrease in recessionsincrease when there is an expansionary output gap.None of the others is correct.decrease in recessionsremain in balance irrespective of business cycles

To ameliorate the effects of a​ recession, a government could enact appropriate policies​ including: a. increasing government purchases. b. decreasing defence spending. c. increasing tax rates d. increasing taxes by a fixed amount.